China's electric cars are becoming slicker and cheaper - but is there a deeper cost?

China has introduced a small electric car called the Seagull, which has quickly become popular in its home market. This car is designed as a compact city vehicle with a sleek and modern look, featuring sharp, downward-slanting headlights that give it a lively appearance. Since its launch in China in 2023, the Seagull has attracted many buyers and has now been introduced to Europe under the name Dolphin Surf. The name change was made because Europeans preferred a different image. Priced at around £18,000 in the UK, the Dolphin Surf is one of the most affordable electric vehicles available in Western markets. While there are cheaper models like the Dacia Spring and Leapmotor T03, the Dolphin Surf is notable because it is produced by BYD, the largest electric vehicle manufacturer in China. BYD surpassed Tesla in 2024 to become the world’s top seller of electric cars and is expanding aggressively in Europe, aiming to become the leading brand in the UK within a decade.

The rise of Chinese electric car brands like BYD, Nio, Xpeng, and others is reshaping the global automotive industry. These companies offer a wide range of vehicles, from small city cars to luxury sports cars, and are gaining market share in Europe and beyond. This growth is supported by China’s strong manufacturing capabilities, government subsidies, and a well-established supply chain. Experts believe this competition benefits consumers by providing more affordable and high-quality electric cars. However, there are concerns about security risks, as modern electric vehicles are connected to the internet and could potentially be hacked or used for spying. Some governments have taken precautions, such as banning certain Chinese-made components from sensitive areas.

China’s rapid development in the electric vehicle sector began after joining the World Trade Organization in 2001 and accelerated with the government’s 'Made in China 2025' plan. This initiative aimed to make China a leader in high-tech industries, including electric vehicles. The plan helped companies like BYD grow from battery makers to major car manufacturers. Despite fierce competition within China’s crowded market, these companies are now looking to expand internationally, especially in Europe, where the shift away from petrol and diesel cars has opened new opportunities. While Chinese manufacturers benefit from lower production costs and government support, some Western countries have responded with tariffs to protect their own industries. Nonetheless, Chinese electric cars continue to gain popularity and are expected to play a significant role in the future of the global car market.